Computer-implemented methods and computer systems for an electronic financial platform

ABSTRACT

In some embodiments, the instant invention provides for specifically programming a computer machine to perform at lease: receiving, from a trader, a passive indication of interest (IOI) for a financial instrument, where the passive IOI is a bid or an offer and a resting liquidity; classifying the trader as at least: a trading type that is subject to a decline ratio calculation for crossing the passive IOIs, where the decline ratio calculation identifies how many eligible aggressive IOIs have been previously declined by the trader out of a total number of all eligible aggressive IOIs that were offered to such trader; receiving, from another trader, another IOI that is an aggressive IOI, where the aggressive IOI is available to be immediately crossed at the price; and determining, in real-time, an allocation of the aggressive IOI to the trader submitted the passive IOI based on the decline ratio of the trader.

RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.16/163,383, filed Oct. 17, 2018, which is a continuation of U.S. patentapplication Ser. No. 15/621,509, filed Jun. 13, 2017, which is acontinuation of U.S. patent application Ser. No. 14/880,676, filed Oct.12, 2015, which is a continuation of U.S. patent application Ser. No.14/478,081, filed Sep. 5, 2014, now U.S. Pat. No. 9,159,104, which is acontinuation of U.S. patent application Ser. No. 14/057,770 filed Oct.18, 2013, which is a continuation of U.S. patent application Ser. No.13/942,423, filed Jul. 15, 2013, now U.S. Pat. No. 8,577,790, whichclaims the benefit of priority of U.S. Provisional Application No.61/829,452, filed May 31, 2013, each of which is incorporated herein byreference in its entirety for all purposes.

TECHNICAL FIELD

In some embodiments, the instant inventions is related tocomputer-implemented methods and computer systems for an electronicfinancial platform for trading, such as, but is not limited to, tradingof commodities, trading assets, trading financial instruments (stocks,bonds, swaps, ETFs, currencies, etc.), etc.

BACKGROUND

Typically, electronic trading venues, such as the New York StockExchange, regulate the order submission process for buying and sellingsecurities. Typically, a trading venue can have its own set of rules,protocols, and processes that its participant/customer, such as a brokeror a dealer, must follow to execute buy/sell orders via that tradingvenue. For instance, the exemplary trading venue may require totransform buy/sell orders to meet its specific rules, protocols, andprocesses of the trading venue prior to submitting those orders forexecution.

SUMMARY OF THE INVENTION

In some embodiments, the instant invention provides for acomputer-implemented method that includes at least the following stepsof: specifically programming at least one computer machine to at leastperform the following: receiving, from a first trader, a firstindication of interest (IOI) for at least one first financial instrumentat a first price; designating, in real-time, the first IOI as a firstpassive IOI; receiving, from a second trader, a second IOI for the atleast one first financial instrument at a second price; designating, inreal-time, the second IOI as a second passive IOI; receiving, from athird trader, a third IOI for the at least one first financialinstrument at a third price; designating, in real-time, the third IOI asa third passive IOI: where each passive IOI is a bid or an offerassociated with the at least one first financial instrument and aresting liquidity, where the resting liquidity is liquidity that doesnot cross upon submission, classifying the first trader, the secondtrader, and the third trader as at least the following trading types: i)a first trading type, where traders of the first trading type aresubject to a decline ratio calculation for crossing their passive IOIs,where the decline ratio calculation identifies how many eligibleaggressive IOIs have been previously declined by each trader of thefirst trading type out of a total number of all eligible aggressive IOIsthat have been offered to such trader during a pre-determined timeperiod, ii) a second trading type, where traders of the second tradingtype are subject to at least one pre-determined criterion for crossingtheir passive IOIs; calculating, for each trader of the first tradingtype, a decline ratio based on the decline ratio calculation, receiving,from a fourth trader, a fourth IOI for the at least one first financialinstrument; designating, in real-time, the fourth IOI as an aggressiveIOI, where the aggressive IOI is available to be immediately crossed atthe first price, the second price, and the third price; determining, inreal-time, from the group selected from the first passive IOI, thesecond passive IOI and the thin: passive IOI, an allocation of theaggressive IOI to: i) a plurality of traders of the first trading typebased at least in part on the decline ratio of each trader from theplurality of traders of the first trading type, or ii) (a) the pluralityof traders of the first trading type based at least in part on thedecline ratio of each trader from the plurality of traders of the firsttrading type the at least one trader of the first trading type, and (b)at least one trader of the second trading type based at least in part onthe at least one pre-determined criterion associated with the at leastone trader of the second trading type; communicating notifications forat least a portion of the aggressive IOI based at least in part on theallocation; receiving, in response to the notifications, from eachtrader of the plurality of traders of the first trading type: (i) anacceptance response or (ii) a decline response; calculating, inreal-time, when the acceptance response is received, a financialcompensation to each trader from the plurality of traders of the firsttrading type who has accepted the at least portion of the aggressive IOIthat has been offered to cross; re-calculating, in real-time when thedecline response is received, based at least in part on the declineresponse, the decline ratio of each trader of the plurality of tradersof the first trading type who has declined the at least portion of theaggressive IOI that has been offered to cross; and cancelling, inreal-time, an uncrossed portion of the aggressive IOI.

In some embodiments, the first trading type is a professional trader andwhere the second trading type is a market maker.

In some embodiments, the trading types further include: iii) a thirdtrading type, where passive IOIs from traders of the third trading typeare subject to crossing based at least in part on a respectivesubmission time for each passive IOI; and where the determining, inreal-time, among the first passive IOI, the second passive IOI and thethird passive IOI, the allocation of the aggressive IOI furtherincludes: allocating, among the traders of the third trading type, basedat least in part on the respective submission time of each respectivepassive IOIs.

In some embodiments, the at least one pre-determined criterionidentifies a pre-determined portion of the aggressive IOI to beallocated to a market maker when a price of the market maker's passiveIOI matches the aggressive IOI of the fourth trader.

In some embodiments, the first, the second, and the third prices are thesame.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: ranking each trader of the first trading type in apriority allocation order based on the decline ratio of each trader fromthe plurality of traders of the first trading type; and allocating theaggressive IOI, in the priority allocation order, to fully satisfy apassive IOI of a higher ranked trader of the first trading type.

In some embodiments, the financial compensation is a rebate based on anaccepted portion of the at least portion of the aggressive IOI that hasbeen accepted to cross.

In some embodiments, the financial compensation is a price discount to afourth price of the aggressive IOI.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: excluding, from the allocation, each trader of thefirst trading type whose decline ratio exceeds a pre-determined declineratio value.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: calculating a premium above a fourth price of theaggressive IOI to be charged to each trader of the first trading typewhose decline ratio exceeds a pre-determined decline ratio value, andallocating, at a fifth price, the aggressive IOI to each trader of thefirst trading type whose decline ratio exceeds the pre-determineddecline ratio value, where the fifth price is a sum of the premium andthe fourth price of the aggressive IOI.

In some embodiments, the notifications only reveal the best bid and thebest offer out of all received IOIs.

In some embodiments, the decline response identifies that a particulartrader of the first trading type has ignored a respective notificationto cross.

In some embodiments, the decline response identifies that the particulartrader of the first trading type has not acted upon the respectivenotification for over 10 seconds after the receipt.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: excluding, from the allocation, a passive IOI ofeach trader of the third trading type when passive IOIs from at leastone market maker and the plurality of the professional traders have acombined liquidity to fully satisfy the aggressive IOI.

In some embodiments, the instant invention provides for acomputer-implemented system that includes at least the followingcomponents/modules: at least one specialize computer machine,comprising: a non-transient memory having at least one region forstoring particular computer executable program code; and at least oneprocessor for executing the particular program code stored in thememory, where the particular program code is configured to at leastperform the following operations: receiving, from a first trader, afirst indication of interest (IOI) for at least one first financialinstrument at a first price; designating, in real-time, the first IOI asa first passive IOI; receiving, from a second trader, a second IOI forthe at least one first financial instrument at a second price;designating, in real-time, the second IOI as a second passive IOI;receiving, from a third trader, a third IOI for the at least one firstfinancial instrument at a third price; designating, in real-time, thethird IOI as a third passive IOI; where each passive IOI is a bid or anoffer associated with the at least one first financial instrument and aresting liquidity, where the resting liquidity is liquidity that doesnot cross upon submission: classifying the first trader, the secondtrader, and the third trader as at least the following trading types: i)a first trading type, where traders of the first trading type aresubject to a decline ratio calculation for crossing their passive IOIs,where the decline ratio calculation identifies how many eligibleaggressive IOIs have been previously declined by each trader of thefirst trading type out of a total number of all eligible aggressive IOIsthat have been offered to such trader during a pre-determined timeperiod, ii) a second trading type, where traders of the second tradingtype are subject to at least one pre-determined criterion for crossingtheir passive IOIs; calculating, for each trader of the first tradingtype, a decline ratio based on the decline ratio calculation, receiving,from a fourth trader, a fourth IOI for the at least one first financialinstrument; designating, in real-time, the fourth IOI as an aggressiveIOI, where the aggressive IOI is available to be immediately crossed atthe first price, the second price, and the third price; determining, inreal-time, from the group selected from the first passive IOI, thesecond passive IOI and the third passive IOI, an allocation of theaggressive IOI to: i) a plurality of traders of the first trading typebased at least in part on the decline ratio of each trader from theplurality of traders of the first trading type, or ii) (a) the pluralityof traders of the first trading type based at least in part on thedecline ratio of each trader from the plurality of traders of the firsttrading type the at least one trader of the first trading type, and (b)at least one trader of the second trading type based at least in part onthe at least one pre-determined criterion associated with the at leastone trader of the second trading type; communicating notifications forat least a portion of the aggressive IOI based at least in part on theallocation; receiving, in response to the notifications, from eachtrader of the plurality of traders of the first trading type: (i) anacceptance response or (ii) a decline response; calculating, inreal-time, when the acceptance response is received, a financialcompensation to each trader from the plurality of traders of the firsttrading type who has accepted the at least portion of the aggressive IOIthat has been offered to cross; re-calculating, in real-time when thedecline response is received, based at least in part on the declineresponse, the decline ratio of each trader of the plurality of tradersof the first trading type who has declined the at least portion of theaggressive IOI that has been offered to cross; and cancelling, inreal-time, an uncrossed portion of the aggressive IOI.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention will be further explained with reference to theattached figures. The figures constitute a part of this specificationand include illustrative embodiments of the present invention andillustrate various objects and features thereof. Specific functionaldetails disclosed herein are not to be interpreted as limiting, butmerely as a representative basis for teaching one skilled in the art tovariously employ the present invention. The figures shown are notnecessarily to scale, with emphasis instead generally being placed uponillustrating the principles of the present invention. Further, somefeatures may be exaggerated to show details of particular components. Inaddition, any measurements, specifications and the like shown in thefigures are intended to be illustrative, and not restrictive.

FIG. 1 illustrates an illustrative example in accordance with someembodiments of the present invention.

FIG. 2 illustrates another illustrative example in accordance with someembodiments of the present invention.

FIG. 3 illustrates yet another illustrative example in accordance withsome embodiments of the present invention.

FIG. 4 illustrates yet another illustrative example in accordance withsome embodiments of the present invention.

FIG. 5 illustrates yet another illustrative example in accordance withsome embodiments of the present invention.

FIG. 6 illustrates a computer system in accordance with some embodimentsof the present invention.

FIG. 7 illustrates a computer system in accordance with anotherembodiments of the present invention.

DETAILED DESCRIPTION

Among those benefits and improvements that have been disclosed, otherobjects and advantages of this invention will become apparent from thefollowing description taken in conjunction with the accompanyingfigures. Detailed embodiments of the present invention are disclosedherein; however, it is to be understood that the disclosed embodimentsare merely illustrative of the invention that may be embodied in variousforms. In addition, each of the examples given in connection with thevarious embodiments of the invention which are intended to beillustrative, and not restrictive.

Throughout the specification and claims, the following terms take themeanings explicitly associated herein, unless the context clearlydictates otherwise. The phrases “In some embodiments” and “in someembodiments” as used herein do not necessarily refer to the sameembodiment(s), though it may. Furthermore, the phrases “in anotherembodiment” and “in some other embodiments” as used herein do notnecessarily refer to a different embodiment, although it may. Thus, asdescribed below, various embodiments of the invention may be readilycombined, without departing from the scope or spirit of the invention.

In addition, as used herein, the term “or” is an inclusive “or”operator, and is equivalent to the term “and/or,” unless the contextclearly dictates otherwise. The term “based on” is not exclusive andallows for being based on additional factors not described, unless thecontext clearly dictates otherwise. In addition, throughout thespecification, the meaning of “a,” “an,” and “the” include pluralreferences. The meaning of “in” includes “in” and “on.”

As used herein, a “financial instrument” refers to a contract/interestrepresenting equity ownership, debt or credit, typically in relation toa corporate or governmental entity, where the contract is typicallysaleable at one or more financial trading venues. Some examples of“financial instruments” can include, but are not limited to, stocks,bonds, commodities, swaps, futures, and currency traded on currencyexchanges.

It is understood that at least one aspect/functionality of variousembodiments described herein can be performed in real-time anddynamically. As used herein, the term “real-time” means that anevent/action can occur instantaneously or almost instantaneously in timewhen another event/action has occurred. For example, in someembodiments, an event occurs in real-time if a time difference between afirst time when a customer's order is received and a second time when amarket maker's offer of a rebate or a fee is received is no more than 1minute. In some embodiments, an event occurs in real-time if a timedifference between a first time when a customer's order is received anda second time when a market maker's offer of a rebate or a fee isreceived is no more than 1 second. In some embodiments, the timedifference between the customer's order and the market maker'srebate/fee offer is between less than 1 second and 1 minute.

As used herein, the term “dynamic(ly)” means that an event/action thatcan occur without any human intervention. The event/action may be inreal-time and/or hourly, daily, weekly and/or monthly.

In some embodiments, the instant inventive platform operates anintroducing broker and aggregator of liquidity in the “off-exchange”(e.g., outside of Chicago Mercantile Exchange) transactions related tofutures and/or swaps. In some embodiments, the instant inventiveplatform can aggregates/receives quotes, also called “indications ofinterest” (IOI) by various means (e.g., telephone, smartphone, Internet,specialized computer interface, etc.).

In some embodiments, users of the instant inventive platform aretraders, representing physical end users, commercial hedgers, and/orproprietary firms.

In some embodiments, the instant inventive platform facilitates crossingof IOIs (i.e., “crossed” indications) which occurs when a single quotedprice satisfies both the buyer and seller and can thus be matched. Insome embodiments, the instant inventive platform real-time and/ordynamically routes crossed indications to a central clearing house, tobe matched and cleared.

In some embodiments, the instant inventive platform receives two typesof IOIs, a passive IOI and an aggressive IOI:

i) a passive IOI is a resting liquidity that joins or improves thecurrent quoted market but does not cross the opposing quoted price; and

ii) an aggressive IOI is IOI that immediately crosses the quoted marketand is an attempt to consume liquidity.

In some embodiments, when the aggressive IOI(s) is/re received by theinstant inventive platform (the market place), opposing passive IOIprovider(s) is/are electronically notified that their price(s) meet(s)another party's price and, if agreed upon, the instant inventiveplatform crosses the IOIs by submitting the deal to a central clearinghouse for matching and clearing.

In some embodiments, the instant inventive platform allows to remedy asituation when a trader who provides the passive IOIs retains theability to decline the deal in the event an aggressive IOI appears andcan be crossed—i.e., the trader with the passive IOIs probes marketswith no-obligation quotes, thus deteriorating the quality of a pool ofliquidity.

In some embodiments, the instant inventive platform monitors/trackstraders and determines individual scores/rankings based on each passivetrader's willingness to honor their passive IOIs.

In some embodiments, the instant inventive platform determines and/ortracks trader's score(s), referred herein as “decline ratio(s).” In someembodiments, the decline ratio is determined as a number of declineddeals divided by a number of trader's eligible deals. In someembodiments, the decline ratio is determined as the number of trader'seligible deals divide by the number of declined deals. In someembodiments, the decline ratio express as a percent of declined dealsover trader's eligible deals.

In some embodiments, the decline ratio can be calculated on a periodicbasis (hourly, daily, several days, weekly, monthly, yearly, etc.) Insome embodiments, the decline ratio can be calculated as an average overseveral predetermined equal or unequal time periods. In someembodiments, the decline ratio can be adjusted on real-time basis.

In some embodiments, the decline ratio can be utilized as an input intoa crossing algorithm for the following period. In some embodiments, thedecline ratio can be utilized as an input into the crossing algorithmafter the average value over several predetermined equal or unequal timeperiods has been calculated. In some embodiments, the decline ratio canbe dynamically adjusted in the crossing algorithm as the decline ratiois adjusted on real-time basis.

In some embodiments, the crossing algorithm of the instant inventiveplatform allocates aggressive indications on a pro-rata basis. In someembodiments, traders with a lower decline ratio receive a higherproportion of crossing notifications than traders with a higher declineratio.

In some embodiments, the crossing algorithm of the instant inventiveplatform allocates aggressive indications on a pro-rata basis so as topenalize traders who have more frequently decline trades and/or whodecline trades exceeding a predetermined value and/or number offinancial instruments (a number of shares). In some embodiments, thedecline ratio monitoring/tracking incentivizes the passive IOI providersto stand firm on their quotes, thus keeping their “decline ratio” low(when the decline ratio is calculated as the number of declined dealsdivided by the number of trader's eligible deals) and their eligibleallocation high.

In some embodiments, the passive IOI providers who decline less can beallowed to charge higher commissions than the passive IOI providers whodecline more. In some embodiments, the passive IOI providers who declineless are given better execution pricing than the passive IOI providerswho decline more.

In some embodiments, traders with a lower decline ratio (when thedecline ratio is calculated as the number of declined deals divided bythe number of trader's eligible deals) receive a higher proportion ofcrossing notifications than traders with a higher decline ratio.

In some embodiments, the distribution of crossing notifications isadjusted based on a suitable formula used to calculate the declineratio.

In some embodiments, the instant inventive platform can be a hybridimplementation having both voice and electronic quoting capabilities. Insome embodiments, the instant inventive platform does not display/revealquantity, volume and/or last traded price information to any marketparticipant. In some embodiments, the instant inventive platform onlyreveals to all participants the best bid and the best offer.

In some embodiments, the instant inventive platform accepts same daylimit orders only. In some embodiments, the instant inventive platformallows for partials. In some embodiments, the instant inventive platformdoes not allow other order types.

In some embodiments, the instant inventive platform operates by allowinga trader to electronically and anonymously place an IOI in a particularfinancial instrument (e.g., commodity). In some embodiments, the IOIsthat do not cross the opposing side of the market are designated as“passive IOIs” and are kept in the indications book (e.g., electronicrecord keeping faculty of the instant inventive platform). In someembodiments, the IOIs that are immediately opposed to or cross theresting liquidity are designated as “aggressive IOIs.”

In some embodiments, a trader submits an IOI in an indication ticket. Insome embodiments, depending on a price selected, the trader's IOI can beautomatically/real-time designated as passive or aggressive IOI. In someembodiments, the trader does not determine the type of IOI beyondselecting a price; consequently, there is not resting aggressive IOIs inthe indications book.

For example, in some embodiments, in the event a passive IOI becomeseligible for crossing, which is determined by the crossing algorithm ofthe instant inventive platform, the passive trader is sent a pop-upnotification that alerts the trader to the aggressive, crossing IOI. Thetrader that submitted the aggressive IOI is committed for price andsize, and awaits the result.

In some embodiments, the pop-up notification identifies that an opposingtrader wishes to cross as the indicated price and a decision to acceptor not needs to be made in the next 10 seconds. The passive trader nowhas the ability to: accept, decline or ignore the deal (e.g., allow timeto expire). In some embodiments, ignoring a deal is equivalent todeclining the deal.

In some embodiments, the pop-up notification identifies that thedecision to accept or not needs to be made in the next 5 seconds. Insome embodiments, the pop-up notification identifies that the decisionto accept or not needs to be made in the next 3 seconds. In someembodiments, the pop-up notification identifies that the decision toaccept or not needs to be made in the next 2 seconds. In someembodiments, the pop-up notification identifies that an opposing traderwishes to cross as the indicated price and a decision to accept or notneeds to be made in a time period between 5 seconds and 30 seconds. Insome embodiments, the pop-up notification identifies that an opposingtrader wishes to cross as the indicated price and a decision to acceptor not needs to be made in a time period between 5 seconds and 60seconds.

In some embodiments, the passive trader who has received thenotification is committed to the price and a full quantity originallyindicated in the trader's passive IOI. In some embodiments, neithertrader knows the other's total quantity, just what they themselves arewilling to do at that price. In some embodiments, the cross would occurfor a minimum of the two quantities provided. Therefore, in someembodiments, no trader can execute more than the traders have identifiedin their IOIs.

In some embodiments, in the event the aggressive quantity is less thanthe passive quantity, the remaining passive quantity would stay in thebook of the instant inventive platform. In some embodiments, in theevent the aggressive quantity is greater than the passive quantity, theremaining (uncrossed) aggressive quantity is canceled, since theaggressive quantity/price cannot rest in the book.

In some embodiments, only the parties involved in the cross are awarethat the cross took place. In some embodiments, in the event the IOIsare crossed, the details of those indications are then electronicallyrouted to the central clearing house for matching and clearing. In someembodiments, upon acceptance, the status of the IOI in the trader'sworkspace (e.g., electronic display of an electronic device (e.g.,terminal, smartphone, PDA, laptop, computer, etc.) changes from apending clearing status to the cleared status (i.e., the visual alert).In some embodiments, the trader receives a textual alert (e.g., SMSmessage, e-mail, screen message, etc.) about the change in the status.In some embodiments, the trader receives an audio alert (e.g., a voicemessage).

In some embodiments, in the event that the passive IOI provider declines(or ignores) the deal, the trader's passive IOI is canceled and removedfrom the indication book, and the aggressive IOI is then routed to anext eligible passive IOI provider. In some embodiments, in the eventthat no other passive liquidity exists, the inventive platform sends tothe aggressive IOI provider a notification (e.g., textual, visual,audio, or some combination thereof) that the deal has been declined andupdated as to whether any partial crossing has occurred. In someembodiments, any remaining aggressive liquidity is removed.

In some embodiments, the decline ratio is a screening/filtering factorin determining a trader's “eligible allocation” of aggressive IOIs.

In some embodiments, the decline ratios are not shown to traders/users.In some embodiments, traders/users are only shown their own respectivedecline ratios. In some embodiments, traders/users are only shown theirown respective decline ratios and the decline ratios of theirs currentcounterparties. In some embodiments, traders/users are shown the declineratios of all other traders/users. In some embodiments, the declineratio of a particular trader/user can be anonymously viewed by otherswithout disclosing the identity of the particular trader/user and/oridentities of others who has viewed the particular trader/user's declineratio.

Some Illustrative Examples

In some embodiments, the instant inventive platform maintains anindication log for each user that tracks the user's activity, includingthe user's decline ratio. For example, as shown in FIG. 1, the instantinventive platform can assign to each user (an individual or a company)a unique “User ID”.

In some embodiments, as shown in FIG. 2, the User ID can be utilized tolog onto the inventive platform and can be referenced in each IOI thatthe user electronically submits.

In some embodiments, as shown in FIG. 3, an IOI can contain market datasuch as the quantity and price that the user is willing to buy or sellat.

In some embodiments, as shown in FIG. 4, the inventive platform canassign each IOI an ID, label as passive (P) or aggressive (A), timestampto, for example, the nearest millisecond, and/or log into a database.

In some embodiments, as shown in FIG. 5, the inventive platform canmaintain, in the indication log, the event history and/or status of thatindication ID, including whether the price and/or quantity was modified,cancelled, eligible to be crossed against, accepted, declined and/orcleared.

In some embodiments, the historical database of logs, on a per userbasis, can be utilized by the instant inventive platform, to calculateand/or track the decline ratio: for example (when the decline ratio iscalculated as the number of declined deals divided by the number oftrader's eligible deals), for each user, identifying each passiveindication that became eligible for crossing for that user and dividingthe user's total number of accepted crosses by a number of theidentified eligible passive indications related to the user's passiveIOI(s).

In some embodiments, the instant inventive platform utilizes the user'sdecline ratio in the inventive pro-rata crossing algorithm. In someembodiments, the inventive crossing algorithm allocates aggressiveindications on a pro-rata basis. For example, traders/users with thelowest decline ratio (when the decline ratio is calculated as the numberof declined deals divided by the number of trader's eligible deals)receive a higher proportion of crossing notifications than traders witha higher decline ratio.

In some embodiments, the inventive pro-rata crossing algorithm of theinventive platform can utilize as inputs at least one or more of thefollowing factors to determine where to route an aggressive allocation.

In some embodiments, the inventive pro-rata crossing algorithm of theinventive platform can utilize a “classification” of a passiveindication (IOI) provider. For example, the inventive platform canclassify its users as a market maker, a professional customer, or acustomer.

In some embodiments, the market maker(s) is a company or an individualthat quotes both a buy and/or a sell price in a financial instrument orcommodity held in inventory, with the intention to make a profit on thebid-offer spread, or turn. In some embodiments, the professionalcustomer is a company or an individual that places buy or sell numerousand/or large volume orders on some consistent basis. In someembodiments, the customer is a company or an individual that tradesinfrequently and/or relatively small orders.

In some embodiments, the inventive pro-rata crossing algorithm of theinventive platform, for example, awards market makers a fixed allocationamount depending on at least one pre-determined criteria, such asconditions of the user agreement with the inventive platform. Forinstance, a market maker can be required to meet certain trading volumeson aperiodic basis (e.g., daily, monthly, annually) for the market makerto qualify to keep their status of market maker.

In some embodiments, the inventive pro-rata crossing algorithm of theinventive platform, for example, awards professional customers in orderof their decline ratio ranking among other professional customers. Insome embodiments, when the decline ratio is calculated as the number ofdeclined deals divided by the number of trader's eligible deals, newprofessional customers start with the highest possible decline ratio(lowest ranking) and need to earn a lower decline ratio (higher ranking)in order to begin receiving regular notifications of aggressive IOIs.

In some embodiments, customers are not entitled to allocation, unlessthere are no market makers or professional customers also available tocross with a particular aggressive IOI. In some embodiments, in the caseother customers' passive IOIs are also present at the same price, theinventive pro-rata crossing algorithm of the inventive platform awardsallocations based on a time priority.

Tables 1 and 2 illustrate an example of an allocation of an aggressiveIOI. For example, as shown in Table 1, the market for corn is 6.25 bid,with a total quantity of 185 on that bid. The 185 quantity is broken upamong 12 different types of users: 3 market makers, 6 professionalcustomers and 3 customers.

TABLE 1 BID QTY BID PRICE TOP OF BOOK 185 6.25 Market Maker 1 10 6.25Market Maker 2 10 6.25 Market Maker 3 10 6.25 Professional Customer 1 156.25 Professional Customer 2 25 6.25 Professional Customer 3 10 6.25Professional Customer 4 25 6.25 Professional Customer 5 5 6.25Professional Customer 6 10 6.25 Customer 1 20 6.25 Customer 2 30 6.25Customer 3 15 6.25

For example, an aggressive IOI arrives into the market to sell a qty of50 at the bid price of 6.25. In one example, the inventive pro-ratacrossing algorithm of the inventive platform displays/transmits theaggressive IOI in the form of a notification to: (1) any market makerson that price and (2) the professional customers in order of theirdecline ratio ranking.

TABLE 2 Decline Bid Bid Fixed Decline Ratio Qty Price Allocation RatioRank Allocation TOP OF BOOK 185 6.25 Market Maker 1 10 6.25 7% 5 (min of5) Market Maker 2 10 6.25 7% 5 (min of 5) Market Maker 3 10 6.25 7% 5(min of 5) Professional 15 6.25 0.250 5 0 Customer 1 Professional 256.25 0.350 6 0 Customer 2 Professional 10 6.25 0.100 2 10 Customer 3Professional 25 6.25 0.150 3 20 Customer 4 Professional 5 6.25 0.050 1 5Customer 5 Professional 10 6.25 0.200 4 0 Customer 6 Customer 1 20 6.250 Customer 2 30 6.25 0 Customer 3 15 6.25 0

As Table 2 illustrates, the inventive pro-rata crossing algorithm of theinventive platform awards all 3 markets makers a notification to cross aquantity of 5 (the predetermined quantity based on the user agreement).As Table 2 illustrates, the inventive pro-rata crossing algorithm of theinventive platform awards professional customers 3 (the decline ratiorank of 2) and 5 (the decline ratio rank of 1) a notification to crosstheir full quantity. As Table 2 illustrates, the inventive pro-ratacrossing algorithm of the inventive platform further awards professionalcustomer 4 (the decline ratio rank of 3) a notification to cross 20 ortheir 25 quantity. As Table 2 illustrates, no other participants receivenotifications from the inventive platform and are unaware that anycrossing is occurring.

In some embodiments, in the event that any user declines an allocation,that allocation would be distributed to the next eligible participant(i.e., the next ranking professional customer or customer) as determinedby the pro-rata crossing algorithm of the instant inventive platform.

In some embodiments, the instant inventive platform transmits/displaysto the aggressive IOI provider updates during this process making themaware of the total quantity crossed. In some embodiments, if there isany remaining (uncrossed) aggressive indication quantity left, theleftover balance is canceled and removed from the instant inventiveplatform/system.

In some embodiments, the instant inventive platform transmits real-timeor in batch eligible crossing(s) that has(have) occurred to the centralclearing facility.

Illustrative Operating Environments for Some Embodiments

FIG. 6 illustrates a computer system in accordance with some embodimentsof the present invention. However, not all of these components may berequired to practice the invention, and variations in the arrangementand type of the components may be made without departing from the spiritor scope of the invention. In some embodiment, the inventive platformhosts a large number of members and concurrent transactions. In otherembodiments, the inventive exchange computer system is based on ascalable computer and network architecture that incorporates variesstrategies for assessing the data, caching, searching, and databaseconnection pooling. An example of the scalable architecture is anarchitecture that is capable of operating multiple servers. Inembodiments, the computing system in accordance with the instantinvention may include, but not limiting to, one or more programmedcomputers, systems employing distributed networking, or other type ofsystem that might be used to transmit and process electronic data.

In embodiments, client devices (e.g., computers, mobile device, etc.)102-104 of market makers and customers (professional and othercustomers) include virtually any computing device capable of receivingand sending a message over a network, such as network 105, to and fromanother computing device, such as servers (e.g., the inventive exchange)106 and 107, each other, and the like.

In some embodiments, the set of such devices includes devices thattypically connect using a wired communications medium such as personalcomputers, multiprocessor systems, microprocessor-based or programmableconsumer electronics, network PCs, and the like. In embodiments, the setof such devices also includes devices that typically connect using awireless communications medium such as cell phones, smart phones,pagers, walkie talkies, radio frequency (RF) devices, infrared (IR)devices, CBs, integrated devices combining one or more of the precedingdevices, or virtually any mobile device, and the like. Similarly, inembodiments, client devices 102-104 are any device that is capable ofconnecting using a wired or wireless communication medium such as a PDA,POCKET PC, wearable computer, and any other device that is equipped tocommunicate over a wired and/or wireless communication medium.

In embodiments, client devices 102-104 are further configured to receivea message from the another computing device employing another mechanism,including, but not limited to email, Short Message Service (SMS),Multimedia Message Service (MMS), instant messaging (IM), internet relaychat (IRC), mIRC, Jabber, and the like.

In embodiments, network 105 is configured to couple one computing deviceto another computing device to enable them to communicate. Inembodiments, network 105 is enabled to employ any form of computerreadable media for communicating information from one electronic deviceto another. Also, in embodiments, network 105 includes a wirelessinterface, and/or a wired interface, such as the Internet, in additionto local area networks (LANs), wide area networks (WANs), directconnections, such as through a universal serial bus (USB) port, otherforms of computer-readable media, or any combination thereof. Inembodiments, on an interconnected set of LANs, including those based ondiffering architectures and protocols, a router acts as a link betweenLANs, enabling messages to be sent from one to another.

Also, in some embodiments, communication links within LANs typicallyinclude twisted wire pair or coaxial cable, while communication linksbetween networks may utilize analog telephone lines, full or fractionaldedicated digital lines including T1, T2, T3, and T4, IntegratedServices Digital Networks (ISDNs), Digital Subscriber Lines (DSLs),wireless links including satellite links, or other communications linksknown to those skilled in the art. Furthermore, in embodiments, remotecomputers and other related electronic devices could be remotelyconnected to either LANs or WANs via a modem and temporary telephonelink. In essence, in embodiments, network 105 includes any communicationmethod by which information may travel between client devices 102-104,and servers 106 and 107.

FIG. 7 shows another exemplary embodiment of the exchange computer andnetwork architecture that supports the inventive computer platform inaccordance with some embodiments of the instant invention. In someembodiments, the client devices of maker makers and customers 202 a, 202b thru 202 n (e.g., computers, mobile device, smart routers, etc.) showneach comprises a computer-readable medium, such as a random accessmemory (RAM) 208 coupled to a processor 210. In some embodiments, theprocessor 210 executes computer-executable program instructions storedin memory 208. Such processors comprise a microprocessor, an ASIC, andstate machines. Such processors comprise, or are be in communicationwith, media, for example computer-readable media, which storesinstructions that, when executed by the processor, cause the processorto perform the steps described herein.

Some embodiments of computer-readable media include, but are not limitedto, an electronic, optical, magnetic, or other storage or transmissiondevice capable of providing a processor, such as the processor 210 ofclient 202 a, with computer-readable instructions.

In some embodiments, other examples of suitable media include, but arenot limited to, a floppy disk, CD-ROM, DVD, magnetic disk, memory chip,ROM, RAM, an ASIC, a configured processor, all optical media, allmagnetic tape or other magnetic media, or any other medium from which acomputer processor can read instructions. Also, various other forms ofcomputer-readable media transmit or carry instructions to a computer,including a router, private or public network, or other transmissiondevice or channel, both wired and wireless. The instructions comprisecode from any computer-programming language, including, for example, C,C++, C#, Visual Basic, Java, Python, Perl, and JavaScript.

In some embodiments, the client devices 202 a-n also include a number ofexternal or internal devices such as a mouse, a CD-ROM, DVD, a keyboard,a display, or other input or output devices. In some embodiments,examples of client devices 202 a-n are personal computers, digitalassistants, personal digital assistants, cellular phones, mobile phones,smart phones, pagers, digital tablets, laptop computers, Internetappliances, and other processor-based devices. In general, a clientdevice 202 a is any type of processor-based platform that is connectedto a network 206 and that interacts with one or more applicationprograms. Client devices 202 a-n operate on any operating system capableof supporting a browser or browser-enabled application, such asMicrosoft™, Windows™, or Linux. The client devices 202 a-n showninclude, for example, personal computers executing a browser applicationprogram such as Microsoft Corporation's Internet Explorer™, AppleComputer, Inc.'s Safari™, Mozilla Firefox, and Opera.

In some embodiments, through the client devices 202 a-n, users/investors212 a-n can communicate over the network 206 with the inventive exchangeof the instant invention, each other and with other systems and devicescoupled to the network 206. As shown in FIG. 2, server devices 204 and213 (e.g., for the inventive exchange) are also coupled to the network206.

Of note, the embodiments described herein may, of course, be implementedusing any appropriate computer system hardware and/or computer systemsoftware. In this regard, those of ordinary skill in the art are wellversed in the type of computer hardware that may be used (e.g., amainframe, a mini-computer, a personal computer (“PC”), a network (e.g.,an intranet and/or the internet)), the type of computer programmingtechniques that may be used (e.g., object oriented programming), and thetype of computer programming languages that may be used (e.g., C++,Basic, AJAX, Javascript). The aforementioned examples are, of course,illustrative and not restrictive.

In some embodiments, the instant invention provides for acomputer-implemented method that includes at least the following stepsof: specifically programming at least one computer machine to at leastperform the following: receiving, from a first trader, a firstindication of interest (IOI) for at least one first financial instrumentat a first price; designating, in real-time, the first IOI as a firstpassive IOI; receiving, from a second trader, a second IOI for the atleast one first financial instrument at a second price; designating, inreal-time, the second IOI as a second passive IOI receiving, from athird trader, a third IOI for the at least one first financialinstrument at a third price; designating, in real-time, the third IOI asa third passive IOI; where each passive IOI is a bid or an offerassociated with the at least one first financial instrument and aresting liquidity, where the resting liquidity is liquidity that doesnot cross upon submission; classifying the first trader, the secondtrader, and the third trader as at least the following trading types: i)a first trading type, where traders of the first trading type aresubject to a decline ratio calculation for crossing their passive IOIs,where the decline ratio calculation identifies how many eligibleaggressive IOIs have been previously declined by each trader of thefirst trading type out of a total number of all eligible aggressive IOIsthat have been offered to such trader during a pre-determined timeperiod, ii) a second trading type, where traders of the second tradingtype are subject to at least one pre-determined criterion for crossingtheir passive IOIs; calculating, for each trader of the first tradingtype, a decline ratio based on the decline ratio calculation, receiving,from a fourth trader, a fourth IOI for the at least one first financialinstrument; designating, in real-time, the fourth IOI as an aggressiveIOI, where the aggressive IOI is available to be immediately crossed atthe first price, the second price, and the third price; determining, inreal-time, from the group selected from the first passive IOI, thesecond passive IOI and the third passive IOI, an allocation of theaggressive IOI to: i) a plurality of traders of the first trading typebased at least in part on the decline ratio of each trader from theplurality of traders of the first trading type, or ii) (a) the pluralityof traders of the first trading type based at least in part on thedecline ratio of each trader from the plurality of traders of the firsttrading type the at least one trader of the first trading type, and (b)at least one trader of the second trading type based at least in part onthe at least one pre-determined criterion associated with the at leastone trader of the second trading type; communicating notifications forat least a portion of the aggressive IOI based at least in part on theallocation; receiving, in response to the notifications, from eachtrader of the plurality of traders of the first trading type: (i) anacceptance response or (ii) a decline response; calculating, inreal-time, when the acceptance response is received, a financialcompensation to each trader from the plurality of traders of the firsttrading type who has accepted the at least portion of the aggressive IOIthat has been offered to cross; re-calculating, in real-time when thedecline response is received, based at least in part on the declineresponse, the decline ratio of each trader of the plurality of tradersof the first trading type who has declined the at least portion of theaggressive IOI that has been offered to cross; and cancelling, inreal-time, an uncrossed portion of the aggressive IOI.

In some embodiments, the first trading type is a professional trader andwhere the second trading type is a market maker.

In some embodiments, the trading types further include: iii) a thirdtrading type, where passive IOIs from traders of the third trading typeare subject to crossing based at least in part on a respectivesubmission time for each passive IOI; and where the determining, inreal-time, among the first passive IOI, the second passive IOI and thethird passive IOI, the allocation of the aggressive IOI furtherincludes: allocating, among the traders of the third trading type, basedat least in part on the respective submission time of each respectivepassive IOIs.

In some embodiments, the at least one pre-determined criterionidentifies a pre-determined portion of the aggressive IOI to beallocated to a market maker when a price of the market maker's passiveIOI matches the aggressive IOI of the fourth trader.

In some embodiments, the first, the second, and the third prices are thesame.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: ranking each trader of the first trading type in apriority allocation order based on the decline ratio of each trader fromthe plurality of traders of the first trading type; and allocating theaggressive IOI, in the priority allocation order, to fully satisfy apassive IOI of a higher ranked trader of the first trading type.

In some embodiments, the financial compensation is a rebate based on anaccepted portion of the at least portion of the aggressive IOI that hasbeen accepted to cross.

In some embodiments, the financial compensation is a price discount to afourth price of the aggressive IOI.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: excluding, from the allocation, each trader of thefirst trading type whose decline ratio exceeds a pre-determined declineratio value.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: calculating a premium above a fourth price of theaggressive IOI to be charged to each trader of the first trading typewhose decline ratio exceeds a pre-determined decline ratio value, andallocating, at a fifth price, the aggressive IOI to each trader of thefirst trading type whose decline ratio exceeds the pre-determineddecline ratio value, where the fifth price is a sum of the premium andthe fourth price of the aggressive IOI.

In some embodiments, the notifications only reveal the best bid and thebest offer out of all received IOIs.

In some embodiments, the decline response identifies that a particulartrader of the first trading type has ignored a respective notificationto cross.

In some embodiments, the decline response identifies that the particulartrader of the first trading type has not acted upon the respectivenotification for over 10 seconds after the receipt.

In some embodiments, the determining the allocation of the aggressiveIOI further includes: excluding, from the allocation, a passive IOI ofeach trader of the third trading type when passive IOIs from at leastone market maker and the plurality of the professional traders have acombined liquidity to fully satisfy the aggressive IOI.

In some embodiments, the instant invention provides for acomputer-implemented system that includes at least the followingcomponents/modules: at least one specialize computer machine,comprising: a non-transient memory having at least one region forstoring particular computer executable program code; and at least oneprocessor for executing the particular program code stored in thememory, where the particular program code is configured to at leastperform the following operations: receiving, from a first trader, afirst indication of interest (IOI) for at least one first financialinstrument at a first price; designating, in real-time, the first IOI asa first passive IOI; receiving, from a second trader, a second IOI forthe at least one first financial instrument at a second price;designating, in real-time, the second IOI as a second passive IOI;receiving, from a third trader, a third IOI for the at least one firstfinancial instrument at a third price: designating, in real-time, thethird IOI as a third passive IOI: where each passive IOI is a bid or anoffer associated with the at least one first financial instrument and aresting liquidity, where the resting liquidity is liquidity that doesnot cross upon submission: classifying the first trader, the secondtrader, and the third trader as at least the following trading types: i)a first trading type, where traders of the first trading type aresubject to a decline ratio calculation for crossing their passive IOIs,where the decline ratio calculation identifies how many eligibleaggressive IOIs have been previously declined by each trader of thefirst trading type out of a total number of all eligible aggressive IOIsthat have been offered to such trader during a pre-determined timeperiod, ii) a second trading type, where traders of the second tradingtype are subject to at least one pre-determined criterion for crossingtheir passive IOIs; calculating, for each trader of the first tradingtype, a decline ratio based on the decline ratio calculation, receiving,from a fourth trader, a fourth IOI for the at least one first financialinstrument; designating, in real-time, the fourth IOI as an aggressiveIOI, where the aggressive IOI is available to be immediately crossed atthe first price, the second price, and the third price; determining, inreal-time, from the group selected from the first passive IOI, thesecond passive IOI and the third passive IOI, an allocation of theaggressive IOI to: i) a plurality of traders of the first trading typebased at least in part on the decline ratio of each trader from theplurality of traders of the first trading type, or ii) (a) the pluralityof traders of the first trading type based at least in part on thedecline ratio of each trader from the plurality of traders of the firsttrading type the at least one trader of the first trading type, and (b)at least one trader of the second trading type based at least in part onthe at least one pre-determined criterion associated with the at leastone trader of the second trading type: communicating notifications forat least a portion of the aggressive IOI based at least in part on theallocation; receiving, in response to the notifications, from eachtrader of the plurality of traders of the first trading type: (i) anacceptance response or (ii) a decline response; calculating, inreal-time, when the acceptance response is received, a financialcompensation to each trader from the plurality of traders of the firsttrading type who has accepted the at least portion of the aggressive IOIthat has been offered to cross; re-calculating, in real-time when thedecline response is received, based at least in part on the declineresponse, the decline ratio of each trader of the plurality of tradersof the first trading type who has declined the at least portion of theaggressive IOI that has been offered to cross; and cancelling, inreal-time, an uncrossed portion of the aggressive IOI.

While a number of embodiments of the present invention have beendescribed, it is understood that these embodiments are illustrativeonly, and not restrictive, and that many modifications may becomeapparent to those of ordinary skill in the art. Further still, thevarious steps may be carried out in any desired order (and any desiredsteps may be added and/or any desired steps may be eliminated).

What is claimed is:
 1. A non-transitory computer readable mediumcomprising instructions that, when executed by a processor in a firstcomputing device of a plurality of computing devices, direct theprocessor to: electronically receive, by the at least one improvedmatching computer system, over a computer network, from a first tradingcomputer system of a first trading entity, at least one of a firstindication of interest (IOI) or a first limit order, for at least onefirst financial instrument at a first price; automatically designate, bythe at least one improved matching computer system, in real-time, thefirst IOI as a first passive IOI; electronically receive, by the atleast one improved matching computer system, over the computer network,from a second trading computer system of a second trading entity, atleast one of a second IOI or a second limit order, for the at least onefirst financial instrument at a second price; automatically designate,by the at least one improved matching computer system, in real-time, thesecond IOI as a second passive IOI; wherein the first passive IOI andthe second passive IOI is a bid or an offer associated with the at leastone first financial instrument and is a resting liquidity, wherein theresting liquidity is an order that does not cross upon immediatesubmission; wherein the first limit order and the second limit order arenot immediately executable; calculate, by at least one improved matchingcomputer system, for each of the first trading entity and the secondtrading entity, a decline ratio based on a decline ratio calculation,wherein the decline ratio calculation identifies at least one of: i) afirst ratio of eligible aggressive IOIs that have been previouslydeclined or cancelled by each trading entity to a total number of alleligible aggressive IOIs that have been associated with such tradingentity during a first pre-determined time period, ii) a second ratio oforders that have been previously declined or cancelled by each tradingentity to a total number of orders that have been associated with suchtrading entity during a second pre-determined time period, iii) a thirdratio of eligible aggressive IOIs that have been previously declined orcancelled by each trading entity to a total number of accepted eligibleaggressive IOIs that have been associated with such trading entityduring a third pre-determined time period, iv) a fourth ratio of ordersthat have been previously declined or cancelled by each trading entityto a total number of executed orders that have been associated with suchtrading entity during a fourth pre-determined time period, or v) anycombination thereof; electronically receive, by the at least oneimproved matching computer system, over the computer network, from athird trading computer system of a third trading entity, at least one ofa third IOI or a third limit order for the at least one first financialinstrument; automatically designate, by the at least one improvedmatching computer system, in real-time, the third IOI as an aggressiveIOI, wherein the aggressive IOI is available to be immediately crossedat the first price, the second price, and the third price; wherein thethird limit order is immediately executable; automatically determine, bythe at least one improved matching computer system, in real-time, fromthe first passive IOI or the second passive IOI, a first allocation ofthe aggressive IOI to each respective passive IOI based at least in parton the decline ratio of each respective trading entity of the firsttrading entity and the second trading entity; electronically andconcurrently communicate, by the at least one improved matching computersystem, over the computer network, at least one first notification forat least a portion of the aggressive IOI based at least in part on thefirst allocation to the first trading computer system of the firsttrading entity and the second trading computer system of the secondtrading entity; electronically receive, by the at least one improvedmatching computer system, over the computer network, in response to theat least one first notification, from respective trading computer systemof each trading entity to whom the at least one first notification hasbeen communicated: i) an acceptance response or ii) a decline response;automatically calculate, by the at least one improved matching computersystem, in real-time, when the acceptance response is received, a firstfinancial compensation to each trading entity who has accepted the atleast portion of the aggressive IOI that has been offered to cross;automatically re-calculate, in real-time, when the decline response isreceived, based at least in part on the decline response, by the atleast one improved matching computer system, the decline ratio of eachtrading entity who has accepted or declined the at least portion of theaggressive IOI that has been offered to cross; automatically cancel, bythe at least one improved matching computer system, in real-time, anuncrossed portion of the aggressive IOI; automatically determine, by theat least one improved matching computer system, in real-time, from thefirst limit order or the second limit order, a second allocation of thethird limit order based at least in part on the decline ratio of eachrespective trading entity of the first trading entity and the secondtrading entity; automatically calculate, by the at least one improvedmatching computer system, in real-time, a second financial compensationto each trading entity whose limit order crossed with the at leastportion of the third limit order; automatically re-calculate, inreal-time, based at least in part on the cross with the third limitorder, by the at least one improved matching computer system, thedecline ratio of each trading entity whose limit order crossed or is notcrossed with the at least portion of the third limit order; andautomatically cancel, by the at least one improved matching computersystem, in real-time, an uncrossed portion of the third limit order. 2.The non-transitory computer readable medium of claim 1, furthercomprising instructions that, when executed by a processor in a firstcomputing device of a plurality of computing devices, direct theprocessor to: automatically determine a liquidity quality, by the atleast one improved matching computer system, by comparing (1) a numberof the orders that have been previously declined or cancelled by eachtrading entity to (2) a number of orders that have been previouslyaccepted by each trading entity.
 3. The non-transitory computer readablemedium of claim 1, further comprising instructions that, when executedby a processor in a first computing device of a plurality of computingdevices, direct the processor to: automatically determine a liquidityquality, by the at least one improved matching computer system, bycomparing (1) a number of the eligible aggressive IOIs that have beenpreviously declined or cancelled by each trading entity to (2) a numberof eligible aggressive IOIs that have been previously accepted by eachtrading entity.
 4. The non-transitory computer readable medium of claim1, wherein the automatic determination of the first and the secondallocations of the aggressive IOI and the third limit order respectivelyare further based at least in part on a respective submission time foreach passive IOI or each limit order respectively.
 5. The non-transitorycomputer readable medium of claim 1, wherein the automatic determinationof the first allocation of the aggressive IOI further comprises:automatically ranking, by the at least one improved matching computersystem, each trading entity in a priority allocation order based on thedecline ratio of each trading entity.
 6. The non-transitory computerreadable medium of claim 1, wherein the automatic determination of thesecond allocation of the third limit order further comprises:automatically ranking, by the at least one improved matching computersystem, each trading entity in a priority allocation order based on thedecline ratio of each trading entity.
 7. The non-transitory computerreadable medium of claim 1, wherein the first and the second financialcompensations are rebates based on an accepted portion of the at leastportion of the aggressive IOI or the at least one portion of the thirdlimit order respectively.
 8. The non-transitory computer readable mediumof claim 1, wherein the first and the second financial compensations areprice discounts respectively.
 9. The non-transitory computer readablemedium of claim 1, wherein the automatic determination of the firstallocation of the aggressive IOI further comprises: automaticallyexcluding, from the allocation, each trading entity whose decline ratioexceeds a pre-determined decline ratio value.
 10. The non-transitorycomputer readable medium of claim 1, wherein the determination of thesecond allocation of the third limit order further comprises:automatically excluding, from the allocation, each trading entity whosedecline ratio exceeds a pre-determined decline ratio value.
 11. Thenon-transitory computer readable medium of claim 1, wherein the declineresponse identifies that a particular trading entity has ignored arespective notification to cross.
 12. The non-transitory computerreadable medium of claim 11, wherein the decline response identifiesthat the particular trading entity has not acted upon the respectivenotification for over 10 seconds after the receipt.